Buguey was formerly a part of Camalaniugan. Most of the early inhabitants were the Ybanags. Buguey grew out of these inhabitants and through immigration from neighboring places including the Ilocos towns.

Buguey carried the name "Cagayan" for a time and was later changed to "Navugay-ira" then to "Mission" and lastly "Buguey." According to the accounts of Fray Julian Malumbres, O.P., before Juan Salcedo, there was a battle ensued between the pirates (moros) and the inhabitants with some Spanish soldiers. The pirates relieved the inhabitants of their earthly belongings including the brass bell of the church which is said to be the largest bell in northern Cagayan. The bell was called Sta. Barbara. To enable them to bring it home, they placed five small vintas side by side and fastened them. With all the stolen loot loaded, the pirates shoved off. Barely recovered from their shock, the inhabitants ran to the shore invoking curses on the pirates. Above the din of their angry shouts, the winds howled, the sea thundered and the vintas of the pirates capsized. And with them went down the bell.

"Navugay-ira! Navugay-ira! (meaning "they capsized!") chorused the inhabitants and the Spanish soldiers who survived the raid. Since their village had no official name, they decided to perpetuate the memory of the bell by calling it "Navugay-ira." Some time later, they deleted "Na" and "Ira" to spell out "Vugay." Much later, the letter "V" was changed to "B" and the word pronounced "Buguey."

The sea has been a benevolent employer and fishing a lucrative job. Music, as revealed by the adoptness of the people in the use of musical instruments, like the harp, violin and guitar, were commonly found in the home of every Bugueyeno.

The principal products are coconut, tobacco, rice, fish and timber, and one of the tourist spot is Bantay Pukis.